Middle East Tensions Shake FTSE Amid Economic Downgrades

The FTSE 100 dropped over 1% due to uncertainties around a Middle East ceasefire and a sharp decline in 3i Group shares. Meanwhile, global stocks slipped and Brent crude prices surged amid ongoing U.S.-Israeli tensions with Iran. The Bank of England is expected to hold interest rates steady.

The FTSE 100 index in London fell over 1% on Thursday, reflecting growing concerns over a possible Middle East ceasefire, compounded by a significant drop in 3i Group shares.

A steep fall of 17.6% in 3i Group shares dragged the market lower, as the private equity firm projected steady, yet restrained, sales growth for its discount retailer Action.

Meanwhile, global stock markets wavered with rising Brent crude prices linked to escalating U.S.-Israeli tensions with Iran, as economic forecasts suggest the Bank of England will maintain its current interest rate amid turbulent economic conditions.

(With inputs from agencies.)